Is Bhanderi Infra. overvalued or undervalued?

As of 16 June 2025, Bhanderi Infra. has moved from a risky to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 25.25, an EV to EBITDA ratio of 46.54, and a ROE of 5.14%. In comparison, its peers such as DLF and Macrotech Development have significantly higher EV to EBITDA ratios of 100.56 and 37.86, respectively, indicating that Bhanderi Infra. is priced at a premium relative to its peers despite its lower performance metrics. The company's valuation is further underscored by its PEG ratio of 0.23, suggesting that growth expectations may not justify the current price. Additionally, while Bhanderi Infra. has outperformed the Sensex in the short term, with a YTD return of 18.91% compared to the Sensex's 4.68%, the long-term performance shows a decline of 2.53% over three years, which raises concerns about its sustainability at this valuation level.